Hotels/Restaurants/Casinos

Darden CFO to leave; cost cutting underway

MariaArmental

Darden Restaurants Inc. said its chief financial officer will retire, and it unveiled a cost-savings plan that includes eliminating a management layer at its Olive Garden and LongHorn Steakhouse chains.

The company, which also said it intends to close its aviation operations, said the moves are expected to save the company $20 million a year.

Darden said it expects about $10 million in savings this year to help offset anticipated dairy and beef increases, and it will record unspecified one-time charges during the current quarter.

"The actions announced today are critically important steps in becoming more efficient in how we support the restaurants," interim Chief Executive Gene Lee said.

The company said the restructuring would affect about 60 positions and eliminate 25 open positions.

As part of the shake-up, the company said Chief Financial Officer Brad Richmond would retire in March, or sooner if a successor is appointed earlier. Chief Human Resources Officer Daisy Ng will also transition out of her role with Danielle Kirgan, now senior vice president for human resources at the company's specialty restaurant group and total rewards, assuming Ms. Ng's post.

Also leaving is Bob McAdam, senior vice president of government and community affairs. Mr. McAdam will remain with the company through the end of the calendar year.

Last month, shareholders voted to replace the company's board with a slate of directors nominated by Starboard Value LP. The new board has retained an executive search firm to help recruit a new CEO.

Shares rose 2% to $56.68 in recent after-hours trading. Through Tuesday's closing, the company's stock had risen 2% for the year.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.